Govt spending to grow Indian IT

Riding on bulging government spend on information technology (IT), among others, the industry expects the domestic IT market to be worth Rs 175,400 crore by 2016.

"The government's role as a buyer of IT can have an significant influence on accelerating the penetration of IT in India," said Neeraj Aggarwal, partner and managing director, Boston Consulting Group (BCG).

Currently, around 25 per cent of domestic IT spend is government-related. India spends only about 0.3 per cent of the GDP on IT, as against 1.2 per cent by UK, and 1.1 per cent by the US. This is set to grow.

According to a report released by BCG-CII on IT enablement of Indian business, the growth will be led by IT-services, which are 50 per cent of domestic IT spend.

"The domestic industry is at an inflexion point when it comes to IT adoption," said Bhaskar Pramanik, chairman, Microsoft Corporation India, and head of CII's National Committee on IT, ITeS & e-Commerce.